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Former Member
Oct 02, 2014 at 02:49 PM

Standard Dep. key LINA , continue depreciation beyond planned useful life

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Hi ,

We have been using LINA since SAP implementation . However now we are noticing that LINA continue depreciation beyond planned useful life ( depreciation extend by few months) and it also does curb. I understand that it is happening because of base method 0009 ( which allow both Dep. after planed life end and Curb) .

In my example

Asset planned useful life = 5 Yr. ( from April 2008 to March 2013)

Date of acquisition / Dep. start date : April 2008 ( we are following calendar year Jan to Dec)

Cost = $979

So monthly depreciation should be = $16.32

Monthly depreciation is correct from April 2008 to Dec 2012 , however from Jan 2014 , it depreciate $14.19 from Jan to March and , remaining $6.40 in April .

I know this is happening due to LINA ( base method 0009) , But is it a best practice to use LINA with above behavior. I think most of the companies use LINA for straight line depreciation , but is above behavior not an issue ?

Also I tested if I create a new Depreciation key with 0011 base method , there is no extension beyond planned useful life , but anybody has any experience using 0011 as base method , will there be other type of problems /issues with 0011 ?

Thanks

RP